Correlation Between Hut 8 and DigiMax Global
Can any of the company-specific risk be diversified away by investing in both Hut 8 and DigiMax Global at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Hut 8 and DigiMax Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hut 8 Corp and DigiMax Global, you can compare the effects of market volatilities on Hut 8 and DigiMax Global and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Hut 8 with a short position of DigiMax Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hut 8 and DigiMax Global.
Diversification Opportunities for Hut 8 and DigiMax Global
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hut and DigiMax is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Hut 8 Corp and DigiMax Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DigiMax Global and Hut 8 is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Hut 8 Corp are associated (or correlated) with DigiMax Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DigiMax Global has no effect on the direction of Hut 8 i.e., Hut 8 and DigiMax Global go up and down completely randomly.
Pair Corralation between Hut 8 and DigiMax Global
Considering the 90-day investment horizon Hut 8 is expected to generate 19.82 times less return on investment than DigiMax Global. But when comparing it to its historical volatility, Hut 8 Corp is 13.87 times less risky than DigiMax Global. It trades about 0.08 of its potential returns per unit of risk. DigiMax Global is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1.50 in DigiMax Global on August 30, 2024 and sell it today you would lose (0.49) from holding DigiMax Global or give up 32.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Hut 8 Corp vs. DigiMax Global
Performance |
| Timeline |
| Hut 8 Corp |
| DigiMax Global |
Hut 8 and DigiMax Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hut 8 and DigiMax Global
The main advantage of trading using opposite Hut 8 and DigiMax Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hut 8 position performs unexpectedly, DigiMax Global can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in DigiMax Global will offset losses from the drop in DigiMax Global's long position.The idea behind Hut 8 Corp and DigiMax Global pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| DigiMax Global vs. SPENN Technology AS | DigiMax Global vs. OFX Group Ltd | DigiMax Global vs. Cypherpunk Holdings | DigiMax Global vs. Cathedra Bitcoin |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |